Consolidated Financial Results
for the Fiscal Year Ended December 31, 2023
[Japanese GAAP]
February 14, 2024

Company name: JAC Recruitment Co., Ltd.
Stock exchange listing: Tokyo Stock Exchange
Code number: 2124
URL: https://corp.jac-recruitment.jp
Representative: Hiromi Tazaki, Co-Founder, Chairman, CEO and Managing Director
Inquiries: Toshihiko Okino, Director, Head of Administration and CFO
Phone: +81-3-5259-6926
Scheduled date of Ordinary General Meeting of Shareholders: March 27, 2024
Scheduled date of commencing dividend payments: March 28, 2024
Scheduled date of filing securities report: March 27, 2024
Availability of supplementary briefing material on annual financial results: Available(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Fiscal Year Ended December 31, 2023 (January 1, 2023 to December 31,
2023)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)

Net Sales
Fiscal year ended
December 31, 2023
December 31, 2022

million yen%

34,47530,435(Note) Comprehensive income:Operating Income
13.3
22.5

million yen

%

8,215
7,044

16.6
21.0

Profit Attributable to
Owners of Parent

Ordinary Income
million yen

8,209
7,052

%

16.4
21.3

million yen

Fiscal year ended December 31, 2023: ¥6,095 million [17.8%]
Fiscal year ended December 31, 2022: ¥5,173 million [29.6%]

Earnings
Per Share
Fiscal year ended
December 31, 2023
December 31, 2022

yen

37.42
31.14

DilutedEarnings
Per Share

Return on
Equity
yen

%

–
–

%

5,978
5,029

18.9
29.5

Ratio of
Ordinary Income
to Total Assets

Operating
Income Margin

36.0
34.4

23.8
23.1

%

36.4
34.7

%

(Reference) Share of profit (loss) of entities accounted for using the equity method:
Fiscal year ended December 31, 2023: ¥ – million
Fiscal year ended December 31, 2022: ¥ – million(Note 1) Diluted earnings per share are not presented as there were no dilutive shares.
(Note 2) The Company conducted a four-for-one stock split effective January 1, 2024. Earnings per share have been
calculated on the assumption that the stock split was conducted at the beginning of the previous fiscal year.
(2) Consolidated Financial Position

Total Assets
As ofDecember 31, 2023
December 31, 2022

(Reference) Equity:

million yen

23,51822,084

Net Assets
million yen

17,217
15,585Equity Ratio

Net Assets Per Share
%

73.2
70.6

yen

107.91
96.48

As of December 31, 2023: ¥17,217 million
As of December 31, 2022: ¥15,585 million(Note) The Company conducted a four-for-one stock split effective January 1, 2024. Net assets per share have been
calculated on the assumption that the stock split was conducted at the beginning of the previous fiscal year.

(3) Status of Consolidated Cash Flows
Cash Flows fromOperating Activities

Cash Flows from
Investing Activities

Cash Flows from
Financing Activities

million yen

million yen

million yen

Fiscal year ended
December 31, 2023
December 31, 2022

7,087
5,913

(461)
(944)

Cash and Cash
Equivalents
at End of Period

million yen(4,838)(3,174)

16,767
14,8792. Dividends
Annual Dividends

Fiscal year ended
December 31,
2022
Fiscal year ended
December 31,
2023
Fiscal year ending
December 31,
2024(Forecast)

1st
Quarterendyen

2ndQuarterendyen

3rdQuarterend
yen

–

0.00

–
–

Year-end

Total

Total
Dividend
Amount(Annual)Dividend
Payout Ratio(Consolidated)

Net Assets-toDividends
Ratio(Consolidated)

yen

yen

million yen

%

%

–

80.00

80.00

3,278

65.2

21.2

0.00

–

90.00

90.00

3,635

60.9

21.1

0.00

–

26.00

26.00

61.8

(Note 1) Dividends for the Company’s shares held in the Employee Stock Ownership Plan (ESOP) Trust Account areincluded in Total Dividend Amount. (Fiscal year ended December 31, 2022: ¥48 million, Fiscal year ended
December 31, 2023: ¥45 million)(Note 2) In calculating dividend payout ratio and net assets-to-dividends ratio, the Company’s shares held in the
Employee Stock Ownership Plan (ESOP) Trust Account are included in the number of shares and the amountof net assets.
(Note 3) The Company conducted a four-for-one stock split effective January 1, 2024. The actual dividend amounts forthe fiscal years ended December 31, 2022, and December 31, 2023, are presented based on pre-stock split
figures.
3. Consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2024 (January 1, 2024 to
December 31, 2024)(% indicates changes from the previous corresponding period.)

Net SalesFirst half
(Cumulative)
Full year

Operating Income

Ordinary Income

Profit Attributable to
Owners of Parent

Earnings
Per Share

million yen%

million yen%

million yen%

million yen%

yen

19,580

13.5

4,525

8.7

4,536

8.9

3,263

8.0

20.47

40,042

16.1

9,450

15.0

9,453

15.2

6,800

13.8

42.62

*Notes:(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes in scopeof consolidation): None
New: –
Excluded: –(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: None
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
4) Retrospective restatement: None
(3) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
As of December 31, 2023: 41,389,300 shares
As of December 31, 2022: 41,389,300 shares2) Total number of treasury shares at the end of the period:
As of December 31, 2023: 1,500,246 shares
As of December 31, 2022: 1,005,871 shares
3) Average number of shares during the period:
Fiscal year ended December 31, 2023: 39,943,887 sharesFiscal year ended December 31, 2022: 40,375,077 shares*These financial results are outside the scope of audit procedures by a certified public accountant or an audit firm.
*Disclaimer Regarding the Use of the Financial Results Forecast and Other Special Notes
The financial results forecast and other forward-looking statements in this document are based on information
currently available and certain assumptions the Company deems to be reasonable. Actual results may differ significantly
from these forecasts due to a variety of factors. For the assumptions used for the financial results forecasts and the notes
regarding the use thereof, please refer to “(4) Future Outlook” on page 5 of the attachment.

Table of Contents - Attachments
1. Overview of Operating Results, etc. ..................................................................................................... 2(1) Overview of Operating Results for the Fiscal Year under Review ................................................... 2(2) Overview of Financial Position for the Fiscal Year under Review .................................................. 4(3) Overview of Cash Flows for the Fiscal Year under Review ............................................................. 4(4) Future Outlook ................................................................................................................................. 5
2. Management Policy .............................................................................................................................. 6(1) Basic Management Policy ................................................................................................................ 6(2) Target Management Benchmarks ..................................................................................................... 6(3) Medium- to Long-Term Business Strategy ...................................................................................... 6(4) Issues to be Addressed ...................................................................................................................... 6(5) Promotion of Environmental Conservation, Social Contribution, and Health Management
Activities, and Efforts in SDGs, etc. ................................................................................................ 7
3. Basic Policy on Selection of Accounting Standards ............................................................................. 8
4. Consolidated Financial Statements and Principal Notes ...................................................................... 9(1) Consolidated Balance Sheets ........................................................................................................... 9(2) Consolidated Statements of Income and Comprehensive Income ................................................. 11(3) Consolidated Statements of Changes in Equity ............................................................................. 13(4) Consolidated Statements of Cash Flows ........................................................................................ 15(5) Notes to Consolidated Financial Statements .................................................................................. 16(Notes on going concern assumption) ............................................................................................. 16(Significant basis of preparing consolidated financial statements) ................................................. 16(Changes in presentation) ............................................................................................................... 17(Additional information) ................................................................................................................. 17(Segment information, etc.) ............................................................................................................ 18(Per share information) ................................................................................................................... 23(Significant subsequent events) ...................................................................................................... 23-1-

1. Overview of Operating Results, etc.

(1) Overview of Operating Results for the Fiscal Year under Review
During the fiscal year ended December 31, 2023, the Japanese economy saw three consecutive quarters ofimprovement in business conditions for large companies in the entire manufacturing industry and sevenconsecutive quarters of improvement in those in the entire non-manufacturing industry, according to the Bank ofJapan’s Tankan Survey released in December, owing to the revitalization of economic activities, marked by arecovery in domestic automobile production following an easing of semiconductor supply shortages and robust
inbound demand on the back of an increase in foreign tourists. On the other hand, future business sentiment isclouded by concerns such as slowing U.S. economic growth, deceleration in China’s economy, and rising prices
in Japan.
Under these circumstances, Japanese companies were highly motivated to hire employees, and the jobs-toapplicants ratio remained robust during the period under review. On the other hand, some U.S.-based IT andconsulting companies and some leading Japanese IT companies continued to refrain from hiring employees
throughout 2023, which affected the digital divisions of the Domestic Recruitment Business, the Group’s core
operations. As a result, in the fiscal year ended December 31, 2023, net sales of the entire Group were lower thanplanned at the beginning of the period, although they increased by 13.3% year on year.
During the fiscal year ended December 31, 2023, the Group’s Domestic Recruitment Business added
consultant staff as planned at the beginning of the period, which was vital to the growth of this Business, with thecircumstances mentioned above taken into account. With the prospect of future business expansion, we also
improved our organizational arrangements by adding executive employees at the Associate Director and the Headof department level, including in the Administration Headquarters. In the executive market, a segment that we
focused on reinforcing during the fiscal year ended December 31, 2023, we achieved a 22% growth year on year.
In addition, the number of core clients, for which we made over 20 successful placements, grew 39% year on
year, owing to reinforced Account Management (management of major client companies in an organized way)effort.
The Overseas Business saw robust performance in Europe and the U.S. In 2023, we opened new offices in
Munich, Germany, Los Angeles, and Charlotte, North Carolina, in the U.S. In January 2024, we opened an officein New York, U.S. On the other hand, against the backdrop of the stalling Chinese economy, performance
stagnated in Asian countries. With the closure of our Hong Kong (Hong Kong Special Administrative Region)
office in September, we ceased all operating activities in China.
The Domestic Job Offer Advertising Business focused its sales efforts on direct recruiting for clientcompanies. Still, both net sales and profit decreased year on year amid the prolonged reduction in hiring byforeign companies.
Selling, general and administrative expenses were kept in line with what was planned at the beginning of
the period, since we continued cost reduction efforts and promoted business process reengineering (BPR) for core
information systems, operational processes, etc., based on the results of current situation analyses conducted in
2022.
As a result, for the fiscal year ended December 31, 2023, net sales reached ¥34,475 million (up 13.3% year
on year). By segment, the Domestic Recruitment Business, the Domestic Job Offer Advertising Business, and theOverseas Business had net sales of ¥30,475 million (up 14.0% year on year), ¥322 million (down 9.7% year onyear), and ¥3,677 million (up 9.7% year on year), respectively.
In terms of profit, operating income was ¥8,215 million (up 16.6% year on year), ordinary income was¥8,209 million (up 16.4% year on year), and profit attributable to owners of parent was ¥5,978 million (up 18.9%
year on year). By segment, the Domestic Recruitment Business posted ¥8,097 million in profit (up 17.8% year
on year). The Domestic Job Offer Advertising Business posted ¥33 million in profit (down 22.6% year on year),and the Overseas Business posted ¥76 million in profit (down 19.8% year on year).
1) Analysis of net sales
Net sales in the Domestic Recruitment Business increased by 14.0% year on year to ¥30,475 million, due to anincrease in the number of consultants accompanying earnings expansion.

-2-

Net sales in the Domestic Job Offer Advertising Business decreased by 9.7% year on year to ¥322 million,
due to reduction in hiring by foreign companies.
Net sales in the Overseas Business increased by 9.7% year on year to ¥3,677 million, due to progress in
the recovery of earnings mainly in Europe.
As a result, net sales for the fiscal year ended December 31, 2023 increased by 13.3% year on year to¥34,475 million.
2) Analysis of operating income
Due to the increase in net sales in the Domestic Recruitment Business and others, gross profit for the fiscal year
ended December 31, 2023 increased by 13.5% year on year to ¥31,821 million, and the gross profit margin was
92.3%.
Selling, general and administrative expenses increased by 12.4% year on year to ¥23,606 million, due toan increase in personnel expenses owing to increased number of personnel and extending performance.
As a result, operating income for the fiscal year ended December 31, 2023 increased by 16.6% year on yearto ¥8,215 million, and the operating income margin increased by 0.7 % year on year to 23.8%.
3) Analysis of non-operating income and loss
Non-operating income for the fiscal year ended December 31, 2023, increased by 5.9% year on year to ¥41
million, due to the posting of items such as gain on cancellation of leases and interest revenue. Non-operating
expenses increased by 52.7% year on year to ¥46 million, due to the posting of items such as interest expenses
and loss on cancellation of rental contracts.
4) Analysis of profit before income taxes and profit attributable to owners of parent
Profit before income taxes for the fiscal year ended December 31, 2023, increased by 17.1% year on year to¥8,207 million. Total of income taxes - current and income taxes - deferred increased by 12.5% year on year to¥2,229 million due to tax credit based on the Tax Measure to Promote Wage Increases and the tax burden for
Profit before income taxes was 27.2% (statutory effective tax rate was 30.6%).
As a result, profit attributable to owners of parent for the fiscal year ended December 31, 2023 increased
by 18.9% year on year to ¥5,978 million.
The following is the sales performance by segment for the fiscal year ended December 31, 2023:
Segment

Net sales (Million yen)Domestic Recruitment Business
Domestic Job Offer Advertising Business
Overseas Business
Total(Note) Intersegment transactions were eliminated.

-3-Year-on-year comparison (%)

30,475

114.0

322

90.3

3,677

109.7

34,475

113.3

The following is the sales performance by segment and industry:
Segment/industry

Net sales (Million yen)

Year-on-year comparison (%)

1. Domestic Recruitment BusinessElectrical, machinery, chemical

10,886

119.0

Consumer goods, services

6,310

121.6

Medical, healthcare

4,823

113.0

IT, telecom

4,297

95.5

Consulting

2,376

114.9

Financial services

1,677

126.7

102

44.7

30,475

114.0

322

90.3

Overseas Business Total

3,677

109.7

Total

34,475

113.3

Other
Domestic Recruitment Business Total
2. Domestic Job Offer Advertising
Business
Domestic Job Offer Advertising BusinessTotal
3. Overseas Business(Note) Intersegment transactions were eliminated.

(2) Overview of Financial Position for the Fiscal Year under Review
Total assets at the end of the fiscal year ended December 31, 2023, increased by ¥1,434 million from the end of
the previous fiscal year to ¥23,518 million. Cash and deposits increased by ¥1,887 million although accounts
receivable - trade decreased by ¥316 million and goodwill decreased by ¥92 million.
Liabilities decreased by ¥197 million from the end of the previous fiscal year to ¥6,301 million. Accrued
expenses decreased by ¥235 million and non-current liabilities ‘other’ decreased by ¥90 million, although income
taxes payable increased by ¥111 million.
Net assets increased by ¥1,631 million from the end of the previous fiscal year to ¥17,217 million, and theequity ratio came out to be 73.2%. The Company paid dividends of surplus totaling ¥3,278 million, and treasury
shares increased by ¥1,187 million, but we posted profit attributable to owners of parent of ¥5,978 million.
(3) Overview of Cash Flows for the Fiscal Year under Review
The balance of cash and cash equivalents at the end of the fiscal year ended December 31, 2023 increased by¥1,887 million from the end of the previous fiscal year to ¥16,767 million. The following is a summary of cash
flow activities.
(Million yen)

Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Cash and cash equivalents at end of period

Fiscal year ended
December 31, 2022
5,913
(944)
(3,174)
14,879-4-

Fiscal year ended
December 31, 2023
7,087
(461)
(4,838)
16,767

Changes
1,173
482(1,664)
1,887

[Cash flows from operating activities]
Net cash provided by operating activities for the fiscal year ended December 31, 2023 was ¥7,087 million(compared with ¥5,913 million provided in the previous fiscal year). The main factors for this are profit before
income taxes of ¥8,207 million and income taxes paid of ¥2,117 million.
[Cash flows from investing activities]
Net cash used in investing activities for the fiscal year ended December 31, 2023 was ¥461 million (comparedwith ¥944 million used in the previous fiscal year). The main factor for this is purchase of intangible assets of¥316 million.
[Cash flows from financing activities]
Net cash used in financing activities for the fiscal year ended December 31, 2023 was ¥4,838 million (comparedwith ¥3,174 million used in the previous fiscal year). The main factors for this are dividends paid of ¥3,275
million and purchase of treasury shares of ¥1,369 million.
Reference: Trends in cash flow indicators

Equity ratio (%)
Equity ratio at fair value (%)
Cash flow vs. interest-bearing
debt (%)
Interest coverage ratio

Fiscal year
ended
December 31,
2019
78.3
395.2

Fiscal year
ended
December 31,
2020
76.4
416.6

Fiscal year
ended
December 31,
2021
70.6
444.2

Fiscal year
ended
December 31,
2022
70.6
444.2

Fiscal year
ended
December 31,
2023
73.2
441.0

–

–

–

–

–

280.4

240.5

302.4

267.2

312.3

Equity ratio: Equity/Total assets
Equity ratio at fair value: Market capitalization/Total assets
Cash flow vs. interest-bearing debt: Interest-bearing debt/Cash flow
Interest coverage ratio: Cash flow/Interest payment(Notes) 1. Market capitalization is calculated as closing price at end of period X Shares outstanding at end of period(excluding treasury shares)
2. Cash flow indicates cash flow from operating activities on the consolidated statements of cash flows.
3. Interest-bearing debt covers all liabilities that bear interest recorded on the consolidated balance sheet.

(4) Future Outlook
While the global talent market is contracting against an uncertain future economic outlook, robust recruitment
demand continues to grow in the Japanese market and at Japanese companies expanding worldwide, driven by
the declining working population. In light of this, the Group’s policy for 2024 will be to continue initiatives aimed
at further concentration and cultivation, focusing on favorable markets, mainly in the Domestic Recruitment
Business. Going forward, we will continue pursuing efficient and highly productive business growth, with pivotal
efforts on increasing and retaining consultants, strengthening career programs, and enhancing rank-based
education for management.
Regarding the consolidated financial results forecast for the fiscal year ending December 31, 2024, theCompany expects net sales of ¥40,042 million, operating income of ¥9,450 million, ordinary income of ¥9,453
million, and profit attributable to owners of parent of ¥6,800 million. Considering our internal reserves provided
for corporate acquisitions, we also plan to pay a year-end dividend of ¥26.00 per share.

-5-2. Management Policy(1) Basic Management Policy
The Group’s main business is recruitment consultancy. The Group has been connecting people, businesses, theeconomy and society and contributing to their growth by linking (introducing) professionals who play animportant role in the development of companies around the world.
The success of these professionals leads to the progress of companies and, eventually, to the developmentof the economy. As the economy develops, it, in turn, leads to the development of society. Moreover, thesecontribute to the preservation of the global environment. It is our mission to continue sustainably promoting thiscycle.
Based on our mission, we always aspire to company management with the following corporate goals.
1. Respect high quality and work with a high level of awareness.
2. Work to the highest level of satisfaction of both companies and job seekers.
3. Be a company that always makes speedy improvements and reforms.
4. Always aspire to be professional, continue to grow as an excellent company in profitability and profit growthrate, and aim to be an attractive company that can satisfy shareholders, customers, and employees.
(2) Target Management Benchmarks
With the recruitment business, which requires little capital investment and with almost no interest-bearing debt
where our cost of capital consists solely of shareholders’ equity costs, we recognize that the operating income
margin and the growth rate of profit are the most important financial benchmarks for us to maintain and improvehigh ROE and PBR going forward.
(3) Medium- to Long-Term Business Strategy
In our “JAC as No. 1” long-term management vision for 2030, we state our aspiration to be the world’s number
one professional recruitment consultancy firm in terms of both service quality and profitability. To achieve this,
we are actively making growth investments, focusing primarily on enhancing the human capital that is
indispensable for improving service quality. While focusing on expanding our share in Japan’s profitable andgrowing white-collar recruitment market, we aim to become No. 1 globally and have been actively developing
our recruitment business worldwide.
We also recognize that earning a return on capital exceeding capital costs is an essential management
requirement. Accordingly, we aim to gain market recognition by maintaining and improving high return on capital.
We recognize the weighted average cost of capital (WACC) calculated at 8.2% as our capital costs. In
contrast, our return on equity (ROE) was 34.7% and return on invested capital (ROIC) was 32.5% at the end of2022, greatly exceeding our capital costs. Excluding 2020 during the COVID-19 pandemic, our ROE has beensustained at a high level of 28–40% over the past decade. Our price-to-book ratio (PBR) was 6.29 times at theend of fiscal 2022, and it has been maintained at a high level of 5–7 times over the past decade.
We are committed to maintaining a high dividend payout ratio while ensuring adequate internal reserves
for future growth investments, aiming for profit growth that exceeds the expansion of our equity. When making
business investments, we view the entire human resources business as one portfolio and set a minimum hurdle
rate of achieving a return on investment (ROI) that exceeds our capital cost. We also use maintenance of current
capital efficiency as one of our criteria for evaluating investments.
Moving forward, we will further enhance disclosure of social impact brought about through initiatives toenrich non-financial capital, striving to increase shareholder value (expand equity spread).

(4) Issues to be Addressed
In the fiscal year ending December 31, 2024, the Domestic Recruitment Business will put greater effort into
increasing and training high-caliber consultants and strengthening management, with the ongoing aim of
expanding the business over the medium- to long-term while maintaining and improving productivity. We will
improve profitability by focusing on the digital transformation (DX) field, for which there is high demand in-6-every industry, the manufacturing industry, where there is high recruitment demand, and high-salary job offerings
such as in the executive field and finance, while also deepening our reach into regional markets. At the same time,
we will strengthen cooperation and collaboration across the Group to maximize Group synergies.
The Overseas Business will increase gross profit by bolstering business in developed countries, includingin Europe and the U.S., where salaries are high. At the same time, we will continue to revise our cost structure,including salary system, to improve overall profitability of the business.
In the Domestic Job Offer Advertising Business, we will strive to recover sales by focusing sales activities
on direct recruiting for client companies.
(5) Promotion of Environmental Conservation, Social Contribution, and Health Management Activities, andEfforts in SDGs, etc.
The Company has long been actively involved in activities that contribute to sustainable development, the fightagainst global warming, and environmental conservation.
The Group began an initiative in fiscal 2008 called the PPP Project, “One Placement Creates One Plant to
Save the Planet,” planting one tree in designated areas of Indonesia and Malaysia for every person it places into
a new job. This embodies our hope that as the seedling grows, the job changer will also grow in his or her newcompany and that the idea of social contribution will take root in as many people as possible. This initiative also
helps to conserve the global environment and combat global warming. To help our employees appreciate thesignificance of this project, we provide opportunities for them to plant trees themselves in the designated forests,
working alongside local students, which aids in transforming their awareness. Furthermore, these forestation
activities create jobs locally, in addition to raising awareness of environmental conservation among the local
community. To date, the Group has planted over 140,000 trees, which absorb about 500 tons of greenhouse gases
annually. With this, the Group has already achieved net-zero carbon emissions for Scope 1 and Scope 2, theofficial metrics for greenhouse gas emission reductions. Going forward, we will continue working on activities
focused on further environmental conservation, setting the goal of net-zero carbon emissions for Scope 3.
JAC Environmental & Animal Protection Foundation, founded in March 2022 by Hiromi Tazaki, CoFounder, Chairman, CEO and Managing Director of the Company, was certified as a public interest incorporated
foundation in February 2023. The Company supports the foundation’s mission and works to preserve the naturalenvironment and protect animals in Japan through its activities.
In addition to these projects, since 2019, the Company has switched business card material from recycled
paper containing used paper to LIMEX, a material with less environmental impact. We have also worked to fostera “plastic free” awareness company-wide by, for example, removing products in plastic PET bottles with a highenvironmental impact from the vending machines installed in our offices. We have switched to paperless meetings,
internationally certified eco-friendly “FSC certified paper,” and recycled polypropylene folders. In addition, we
have distributed cloth eco-bags to all Group employees to use instead of plastic bags and shared the significanceof this with them. Furthermore, in April 2022, we switched the electric power used at our Tokyo Head Office to100% green electricity in principle and did the same at our Nagoya branch office in April 2023. We also plan tomake the switch at our Yokohama branch office in April 2024.
As part of the D&I Project, in order to take the initiative in promoting active social participation by women,
since 2007 we have implemented the Employee Childcare Support Project, which provides childcare allowanceto employees. In the fiscal year ended December 31, 2023, we provided dual-income couples with up to¥100,000/month (up to 9 months old) – ¥30,000/month (from the first to third year of primary school) per child.
As a result, almost 100% of our female employees return to work after maternity leave, and the personal
performance of working mothers in consultant positions after returning is comparable to the company-wide
average. As a company, we have encouraged and successfully implemented a system that allows most consultants
and staff members to balance work and childcare while continuing to build a career. The Working Parents
Committee, which consists of employees, has led the effort to do so. In addition, we have established the Women
Empowerment Committee, led by incumbent female managers. This committee, which operates on thefundamental belief that “the gender ratio among management should be equivalent to the ratio of all employees,”collaborates with male managers to develop new female managerial talent.

-7-

The “Philosophy & Policy” of our management includes “Fairness: A company where employees areevaluated based on their capabilities and achievements. People who work at JAC are always given a fair chance.”
Based on this thinking, to ensure that LGBTQ+ employees can work with peace of mind, we have madeemployees in same-sex marriages and common-law marriages eligible for congratulatory and condolence
payments. We have also launched the LGBTQ+ Committee to create a structure where employees engage actively
in various activities. A culture of “creating a work environment where diverse employees can play an active roleon equal terms” has been instilled across the Company.
As part of our philosophy, our employees aim to take care of both body and mind and to be individuals
who can play a significant role in the growth of client companies and people. With management-levelcommitment, we have implemented various company-wide health promotion activities. In order to enhance the
Healthy Challenge program, we have introduced a system to assist employees with sports club expenses, as wellas other initiatives such as providing health-conscious meals in the office. We are also aiming for a 0% smoking
rate Group-wide, and we subsidize the cost of smoking cessation treatment to achieve the target. In fiscal 2023,
for the sixth consecutive year, we were recognized under the Health & Productivity Management Recognition
Program by the Ministry of Economy, Trade and Industry and the Nippon Kenko Kaigi. Going forward, we willcontinue to actively work on SDGs company-wide and strive to foster a high level of corporate awareness.
3. Basic Policy on Selection of Accounting Standards
Believing that applying IFRS would be of little advantage in the current situation, and considering the burden ofchanging to IFRS, the Group applies Japanese GAAP.
Concerning the future, the Group will appropriately respond while taking into consideration trends in IFRS
adoption by listed companies.

-8-4. Consolidated Financial Statements and Principal Notes(1) Consolidated Balance Sheets(Million yen)
As of December 31, 2022

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Supplies
Prepaid expenses
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
VehiclesAccumulated depreciation
Vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Software
Software in progress
Total intangible assets
Investments and other assets
Investment securities
Investments in capital
Lease and guarantee deposits
Claims provable in bankruptcy, claims provablein rehabilitation and other
Long-term prepaid expenses
Deferred tax assets
Long-term accounts receivable - other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

As of December 31, 2023

14,879
2,244
7
413
283
(7)
17,82016,767
1,928
0
384
314
(24)
19,370

421
(220)
201
66
(35)
30
0
(0)

526
(237)
289
66
(45)
21
0
(0)

383
(237)
145
4
(2)
2
0
401
(36)
364
745

419
(275)
144
4
(2)
1

814
617
100
1,532

721
550
154
1,426

0
0
969

0
0
928

13

10

27
988
2
(16)
1,985
4,263
22,084

24
980
1
(12)
1,933
4,147
23,518

–

-9-

–

–

436
(104)
331
788

(Million yen)
As of December 31, 2022
Liabilities
Current liabilities
Lease obligations
Accounts payable - otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Deposits received
Unearned revenue
Provision for stocks payment
Refund liabilities
Other
Total current liabilities
Non-current liabilities
Lease obligations
Deferred tax liabilities
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Foreign currency translation adjustment
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets- 10 -

As of December 31, 2023

0
590
2,995
1,207
659
242
93
170
74
128
6,161

0
504
2,760
1,318
688
297
36
204
59
181
6,052

1
–
335
337
6,498

0
2
245
248
6,301

672
1,514
15,022(1,793)
15,415672
1,516
17,722(2,980)16,930169
169
15,58522,084286
286
17,21723,518

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Remuneration for directors (and other officers)
Salaries and allowances
Legal welfare expenses
Retirement benefit expenses
Provision for share awards
Provision of allowance for doubtful accounts
Rent expenses on land and buildings
Depreciation
Amortization of goodwill
Advertising expenses
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Gain on cancellation of leases
Insurance fee income
Rental income from facilities
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Loss on cancellation of rental contracts
Other
Total non-operating expenses
Ordinary income
Extraordinary losses
Loss on retirement of non-current assets
Impairment losses
Loss on valuation of investment securities
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to owners of parent

For the fiscal year ended
December 31, 2022
30,4352,391
28,043- 11 -(Million yen)
For the fiscal year ended
December 31, 2023
34,4752,654
31,821772
11,868
1,522
376
170
0
1,157
448
115
1,597
2,969
20,9997,044

721
13,246
1,780
460
202
16
1,285
541
119
1,565
3,665
23,606
8,215

4
6
5
4
17
39

9
17
5
5
2
41

22
8
–
0
30
7,052

22
9
13
1
46
8,209

12
29
0
41
7,011
2,134
(152)
1,981
5,029
5,029

1
–
–
1
8,207
2,218
11
2,229
5,978
5,978

Consolidated Statements of Comprehensive Income

ProfitOther comprehensive income
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

For the fiscal year ended
December 31, 2022
5,029(Million yen)
For the fiscal year ended
December 31, 2023
5,978

144
144
5,173

117
117
6,095

5,173

6,095

–

–

- 12 -

(3) Consolidated Statements of Changes in Equity
Fiscal year ended December 31, 2022 (from January 1, 2022 to December 31, 2022)(Million yen)

Shareholders’ equity
Capital stock
Balance at beginning of period
Cumulative effects of changes inaccounting policies
Restated balance
Changes of items during period
Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Disposal of treasury shares
Net changes in items other thanshareholders’ equity
Total changes of items during period
Balance at end of period

Balance at beginning of period
Cumulative effects of changes inaccounting policies
Restated balance
Changes of items during period
Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Disposal of treasury shares
Net changes in items other thanshareholders’ equity
Total changes of items during period
Balance at end of period

Capital surplus

672

1,515

Retainedearnings

Treasury shares

12,982(1,829)

1
672

1,515

12,983(0)
1,514

Accumulated othercomprehensive income
Total
accumulated
Foreign currency
othertranslation
comprehensive
adjustment
income25
25

25

13,341

5,029

5,029

2,038
15,022

Total net assets

13,365

13,367(2,990)
5,029
(0)
35

144

144

144

144
169

144
169

2,218
15,585- 13 -(1,829)(2,990)125

1(2,990)

(0)

–
672

Total
shareholders’equity13,340

(0)
36

(0)
35

35
(1,793)

2,074
15,415Fiscal year ended December 31, 2023 (from January 1, 2023 to December 31, 2023)(Million yen)

Shareholders’ equity
Capital stock
Balance at beginning of period
Changes of items during period
Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Disposal of treasury shares
Net changes in items other thanshareholders’ equity
Total changes of items during period
Balance at end of period

Balance at beginning of period
Changes of items during period
Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Disposal of treasury shares
Net changes in items other thanshareholders’ equity
Total changes of items during period
Balance at end of period

Capital surplus

672

1,514

Retainedearnings

Treasury shares

15,022(3,278)(3,278)

5,978

5,978

1

–
672

1
1,516

Accumulated othercomprehensive income
Total
Foreign currency
accumulated
othertranslation
comprehensive
adjustment
income
169
169

2,699
17,722

Total net assets

15,585(3,278)5,978(1,369)
184

117

117

117

117
286

117
286

1,631
17,217- 14 -(1,793)

Total
shareholders’equity15,415(1,369)182(1,369)184(1,187)(2,980)1,514
16,930(4) Consolidated Statements of Cash Flows
For the fiscal year ended
December 31, 2022
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for stocks payment
Increase (decrease) in refund liabilities
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Loss on retirement of non-current assets
Impairment losses
Loss (gain) on valuation of investment securities
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in accounts payable - other
Increase (decrease) in accrued expenses
Increase (decrease) in accrued consumption taxes
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Short-term loan advances
Collection of short-term loans receivable
Purchase of long-term prepaid expenses
Payments of leasehold and guarantee deposits
Proceeds from collection of other investments
Net cash provided by (used in) investing activities
Cash flows from financing activities
Dividends paid
Repayments of lease obligations
Purchase of treasury shares
Other payments
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 15 -(Million yen)
For the fiscal year ended
December 31, 2023

7,011
448
115
(6)
170
22
(4)
22
1
12
29
0
(439)
0
(90)
420
166
313
8,192
4
(22)
(2,261)
5,913

8,207
541
119
14
202
(14)
(9)
22
2
1
–
–
320
6
(68)
(235)
23
82
9,217
9
(22)
(2,117)
7,087

(312)
(408)
(38)
37
(28)
(195)
0
(944)

(152)
(316)
(45)
55
(8)
(40)
45
(461)

(2,986)
(0)
(0)
(186)
(3,174)151
1,946
12,932
14,879(3,275)(0)(1,369)(192)(4,838)100
1,887
14,87916,767

(5) Notes to Consolidated Financial Statements(Notes on going concern assumption)
Not applicable.
(Significant basis of preparing consolidated financial statements)
1. Scope of consolidation
Number of consolidated subsidiaries: 22
Names of main consolidated subsidiaries
JAC International Co., Ltd.
CareerCross Co., Ltd.
VantagePoint K.K.
JAC Recruitment International Ltd.
2. Scope of equity method
Not applicable.
3. Fiscal year-end, etc. of consolidated subsidiaries
The fiscal year-end of consolidated subsidiaries is the same as the consolidated fiscal year-end.
4. Accounting policies(1) Valuation methods for assets
Securities
Other securities:
Shares, etc. that do not have a market priceStated at cost determined by the moving average method.
(2) Depreciation and amortization of significant assets
1) Property, plant and equipment (excluding leased assets)
The Company and its domestic consolidated subsidiaries apply the declining-balance method. However,auxiliary facilities attached to buildings and structures acquired on or after April 1, 2016, are depreciatedby the straight-line method.
Overseas consolidated subsidiaries apply the straight-line method.
The main useful lives are as follows:
Buildings:
3-15 years
Machinery and equipment: 7 years
Tools, furniture and fixtures: 2-20 years
2) Intangible assets (excluding leased assets)
The straight-line method is applied. Internal use software is amortized over its internal estimated usefullife (3-5 years).
3) Leased assets
The straight-line method is applied assuming the lease periods as useful lives with no residual value.
(3) Recognition standards of significant allowances
1) Allowance for doubtful accounts
To cover losses from bad debts for accounts receivable - trade, etc., an allowance for doubtful accounts
is provided based on historical experience of bad debts for general receivables and on an estimate of thecollectability of certain receivables deemed doubtful of collection.
2) Provision for stocks payment
To cover employee stock payments based on the Share Delivery Rules, the Company records a provision
for stocks payment based on the estimated amount of share payment obligations as of the consolidatedbalance sheet date.

- 16 -

(4) Standards for recording significant revenues and expenses
1) Recruitment BusinessIn the recruitment service, we have obligations to introduce candidates primarily for permanent positions
to client employers. We recognize success-based consulting fees as revenue when the candidates join
the client employers. We receive consideration for the transaction generally within one month from thetime when the performance obligations were fulfilled.
In the Recruitment Process Optimisation service, we have obligations to support client employers intheir recruitment activities primarily for permanent employees. The service is provided over a contract
period, and we recognize revenue on a pro rata basis over the contract period, judging that our
performance obligations are fulfilled with the lapse of time. Consideration for the transaction is received
in a phased manner, generally according to the progress of the performance obligations, in accordancewith the terms and conditions of transactions.
2) Job Offer Advertising BusinessIn the Job Offer Advertising Business, we have obligations to post job offers primarily for permanent
positions solicited from client employers on job offer advertising websites. We concurrently use a
prepayment method in which we recognize revenue when we are awarded a contract and a success-based
method in which we recognize revenue when a job seeker joins a client employer via a job offer
advertising website. We receive consideration for the transaction generally within one month from thetime when the performance obligations were fulfilled.
(5) Translation standards of significant assets and liabilities in foreign currency
Assets and liabilities of overseas consolidated subsidiaries are translated into yen at the rates of exchange in
effect at the consolidated balance sheet date, and revenue and expense accounts are translated at the average
rates of exchange in effect during the fiscal year. Differences arising from the translation are presented astranslation adjustments in the net assets section.
(6) Method and period of amortization of goodwill
Amortized using the straight-line method over 10 to 12 years.
(7) Scope of cash and cash equivalents in the consolidated statements of cash flows
Cash and cash equivalents consist of cash on hand, cash in banks which can be withdrawn at any time, andshort-term investments with a maturity of three months or less when purchased which can easily be converted
to cash and are subject to little risk of change in value.
(Changes in presentation)(Consolidated statements of income)“Reversal of allowance for doubtful accounts” which was presented as a separate account under “Non-operating
income” in the previous fiscal year, has been included in “Other” under “Non-operating income” in the current
fiscal year due to its decreased financial materiality.
“Reversal of allowance for doubtful accounts” under “Non-operating income” in the consolidated
financial statements for the previous fiscal year was ¥7 million.
(Additional information)(Transactions to deliver shares of the Company through a trust to employees)
The Employee Stock Ownership Plan (ESOP) Trust Program, an incentive plan for employees, was introducedin August 2015 for the purpose of enhancing employee benefits and increasing the Company’s medium- to longterm corporate value, but due to its termination in March 2021, it was re-introduced in May 2021.
(1) Transaction summary
Pursuant to the established Share Delivery Rules, the Company grants points to employees who satisfy certain
requirements, and shares of the Company equivalent to these points are delivered. The shares delivered to
employees, including those to be delivered in the future, are purchased by cash held in the trust, managed
separately as trust assets.

- 17 -

(2) Company shares remaining in the trust
Shares of the Company remaining in the trust are recorded as treasury shares under net assets based on thebook value in the trust (excluding incidental expenses). The book value and the number of said treasury shareswere ¥1,017 million and 600,080 shares, respectively, as of December 31, 2022, and ¥849 million and 500,844
shares, respectively, as of December 31, 2023.
(Segment information, etc.)[Segment information]
1. Overview of reportable segments
The reportable segments of the Group are components for which separate financial information is available andare the subject of regular review by the Board of Directors to determine the allocation of management resourcesand evaluate performance.
The Group is engaged in the Domestic Recruitment Business, the Domestic Job Offer Advertising Business,and the Overseas Business. The Group has 12 domestic offices and two subsidiaries in the Domestic Recruitment
Business, one domestic subsidiary in the Domestic Job Offer Advertising Business, and 19 subsidiaries in 10
countries and regions in the Overseas Business. As management resources are allocated to each business,reportable segments are presented according to business unit.
2. Method of calculating amounts of net sales, profit (loss), assets, liabilities, and other items by reportable segment
In principle, the accounting method for reportable segments is the same as described in “Significant basis ofpreparing consolidated financial statements.” Inter-segment sales and transfers are based on prevailingmarket prices.
The Group does not allocate assets to business segments as asset information is not used for managing
performance.

- 18 -

3. Information on net sales, profit (loss), assets, liabilities, and other items by reportable segment
For the fiscal year ended December 31, 2022 (from January 1, 2022 to December 31, 2022)(Million yen)
Reportable segment
Domestic
Recruitment
Business

Domestic Job
Offer
Advertising
Business

26,215

217

511

Segment total

Adjustment

2,360

28,793–

28,793

139

991

1,642

–

1,642

26,726356

3,351

30,435–30,43526,726356

3,351

30,435–30,435

19

18

19

56

(56)

–

26,746375

3,371

30,492(56)

30,435

6,872

43

95

7,011

–

7,011

Depreciation

289

–

159

448

–

448

Amortization of goodwill

74

–

41

115

–

115

Interest income

0

0

3

4

–

4

Interest expenses

0

–

22

22

–

22

Extraordinary losses

8

–

33

41

–

41

(Loss on retirement of noncurrent assets)

8

–

4

12

–

12

(Impairment losses)

–

–

29

29

–

29

Overseas
Business

Total

Net sales
Goods transferred at apoint in time
Goods transferred overtime
Revenue from contracts
with customers
Net sales to outside
customers
Intersegment net sales ortransfers
Total
Segment profit (loss)
Other items(Loss on valuation of
–
–
–
0
0
investment securities)(Note) Segment profit is consistent with the profit before income taxes in the consolidated statements of income.

- 19 -0For the fiscal year ended December 31, 2023 (from January 1, 2023 to December 31, 2023)(Million yen)
Reportable segment
Domestic
Recruitment
Business

Domestic Job
Offer
Advertising
Business

29,880219

595

Segment total

Adjustment

2,601

32,701–

32,701

102

1,076

1,773

–

1,773

30,475322

3,677

34,475–34,47530,475322

3,677

34,475–34,475

22

27

19

68

(68)

–

30,498349

3,697

34,544(68)

34,475

8,097

33

76

8,207

–

8,207

Depreciation

375

–

165

541

–

541

Amortization of goodwill

74

–

45

119

–

119

Interest income

0

0

9

9

–

9

Interest expenses

0

–

22

22

–

22

Extraordinary losses

1

–

0

1

–

1

Overseas
Business

Total

Net sales
Goods transferred at apoint in time
Goods transferred overtime
Revenue from contracts
with customers
Net sales to outside
customers
Intersegment net sales ortransfers
Total
Segment profit (loss)
Other items(Loss on retirement of non––0
1
1current assets)(Note) Segment profit is consistent with the profit before income taxes in the consolidated statements of income.

4. Information on impairment losses on non-current assets and goodwill by reportable segment(Significant impairment losses on non-current assets)
The Overseas Business reportable segment posted impairment losses of ¥29 million for the fiscal year ended
December 31, 2022.

- 20 -

1

[Related information]
For the year ended December 31, 2022 (from January 1, 2022 to December 31, 2022)
1. Information by product and service
This information is not provided here because it is the same as the information provided under “Segment
information.”
2. Information by geographical area
(1) Net sales
Japan

Asia

(Million yen)Total
30,435

Europe27,083
2,957(Note) Net sales are segmented into country or region based on customer location.

394(2) Property, plant and equipment
Japan
309

Asia
(excluding Singapore)
106(Million yen)
Singapore

Europe
308

Total
19

745

3. Information by major customer
This information is not provided here because there were no customers that accounted for 10% or more of the
net sales recorded in the consolidated statements of income.
For the year ended December 31, 2023 (from January 1, 2023 to December 31, 2023)
1. Information by product and service
This information is not provided here because it is the same as the information provided under “Segment
information.”
2. Information by geographical area
(1) Net sales(Million yen)

Europe and the UnitedStates30,784
2,989
701(Note) Net sales are segmented into country or region based on customer location.
Japan

Total

Asia

34,475(2) Property, plant and equipment
Japan
388

Asia
(excluding Singapore)
129(Million yen)

Europe and theUnited States

Singapore
256

Total
13

788

3. Information by major customer
This information is not provided here because there were no customers that accounted for 10% or more of the
net sales recorded in the consolidated statements of income.

- 21 -

[Information on impairment losses on non-current assets by reportable segment]
For the year ended December 31, 2022 (from January 1, 2022 to December 31, 2022)
Reportable segment
Domestic Job
Domestic
Offer
Recruitment
Advertising
Business
Business
Impairment losses––

Overseas
Business(Million yen)

Corporate orReportable elimination ofsegments total inter-segment
transactions

29

29

Total

29

–

For the year ended December 31, 2023 (from January 1, 2023 to December 31, 2023)
Not applicable.
[Information on amortization of goodwill and unamortized balance by reportable segment]
For the year ended December 31, 2022 (from January 1, 2022 to December 31, 2022)
Reportable segment
Domestic Job
Domestic
Offer
Recruitment
Advertising
Business
Business
Balance at end of period

518–

Overseas
Business(Million yen)

Corporate orReportable elimination ofsegments total inter-segment
transactions

295

814

–

Total

814

(Note) Amortization of goodwill is not provided here because it is the same as the information provided under “Segment
information.”

For the year ended December 31, 2023 (from January 1, 2023 to December 31, 2023)
Reportable segment
Domestic Job
Domestic
Offer
Recruitment
Advertising
Business
Business
Balance at end of period

444–

Overseas
Business(Million yen)

Corporate orReportable elimination ofsegments total inter-segment
transactions

277

721

–

Total

721

(Note) Amortization of goodwill is not provided here because it is the same as the information provided under “Segment
information.”[Information on gain recognized on negative goodwill by reportable segment]
Not applicable.

- 22 -

(Per share information)(Yen)

Previous fiscal year
(From January 1, 2022 to December 31, 2022)

Current fiscal year
(From January 1, 2023 to December 31, 2023)

Net assets per share

96.48

Net assets per share

107.91

Basic earnings per share

31.14

Basic earnings per share

37.42(Notes) 1. The Company conducted a four-for-one stock split effective January 1, 2024. The amounts for per share
information have been calculated on the assumption that the stock split was conducted at the beginning of
the previous fiscal year.
2. The basis for calculation of net assets per share is as follows.
Previous fiscal year
(As of December 31, 2022)

Current fiscal year
(As of December 31, 2023)

15,585

17,217––

15,585

17,217

165,557,200

165,557,200

4,023,484

6,000,984

161,533,716

159,556,216

Total net assets (Million yen)Amounts deducted from total net assets (Million yen)
Net assets attributable to shares of common shares(Million yen)
Number of outstanding common shares
Number of treasury shares of common shares
Number of common shares used to calculate net assets pershare

3. The basis for calculation of basic earnings per share is as follows.

Previous fiscal year
(From January 1, 2022
to December 31, 2022)

Current fiscal year
(From January 1, 2023
to December 31, 2023)

Basic earnings per share
Profit attributable to owners of parent (Million yen)Amount not attributable to common shareholders(Million yen)
Profit attributable to owners of parent relating tocommon shares (Million yen)
Average number of common shares during the period

5,029

5,978

–

–

5,029

5,978

161,500,310

159,775,548

4. The shares of the company remaining in the trust, which are recorded as treasury shares under shareholders’equity, are included in the treasury shares to be deducted in the calculation of average number of shares during
the period for the purpose of calculating basic earnings per share, and are also included in the number of treasury
shares to be deducted from the total number of shares outstanding as of the end of the period for the purpose of
calculating net assets per share.
The average number of treasury shares during the period deducted for the purpose of calculating basic earnings
per share is 600,080 shares for the fiscal year ended December 31, 2022 and 523,517 shares for the fiscal year
ended December 31, 2023. The number of treasury shares deducted at the end of the period for the purpose of
calculating net assets per share is 600,080 shares for the fiscal year ended December 31, 2022 and 500,844 sharesfor the fiscal year ended December 31, 2023.

(Significant subsequent events)
Not applicable.

- 23 -